Slide 1: Second Half and Full Year 2020 Financial Results
Second Half and Full Year 2020 Financial Results 26 January 2021
Slide 2: Contents
Contents ▪ Key Highlights ▪ Financial Performance ▪ Capital Management ▪ Portfolio Update ▪ Outlook Constituent of: Awards and Accreditations: FTSE Straits FTSE EPRA Nareit MSCI Singapore GPR 250 Times Index Global Developed Index Small Cap Index Index Series 2
Slide 3: Key Highlights
Key Highlights ▪ Strong financial performance supported by new acquisitions Strengthened DPU increased 20.5% y-o-y to 9.170 cents while Distributable Income increased 38.6% to $156.9m in FY 2020 European Presence with 3 acquisitions in FY 2020 ▪ Proactive asset management to improve portfolio return
Slide 4: Steady Portfolio Growth Since Listing
Steady Portfolio Growth Since Listing Keppel DC Dublin 1 Keppel DC Remaining 999- Kelsterbach Amsterdam year leasehold Data Centre Data Centre Intellicentre Singapore 4 land interest 3 East Data DC1 Keppel DC maincubes Singapore Centre Cardiff Keppel DC Data Centre 5 Milan Keppel DC Dublin 2 Data Da
Slide 5: Strengthened Foothold in the Netherlands with Acquisition
Strengthened Foothold in the Netherlands with Acquisition ▪ Acquired a data centre and office facility: Data centre is on a double-net lease while DPU-accretive acquisition the majority of the office spaces is leased to data centre and IT services firms ▪ Well-located in the Schiphol business park i
Slide 6: Financial Performance
Financial Performance KGey-T] DC REIT 6
Slide 7: Distributable Income
Distributable Income Distribution Per Unit (cents)1 2H 2H +/(-) FY FY +/(-) 9.170 ($’000) 2020 2019 % 2020 2019 % +20.5% Distributable Income 81,935 58,892 39.1 156,915 113,245 38.6 7.610 to Unitholders Comprising Gross Revenue 141,621 99,333 42.6 265,571 194,826 36.3 FY 2019 FY 2020 Property Expens
Slide 8: Balance Sheet
Balance Sheet As at As at +/(-) ($’000) 31 Dec 2020 31 Dec 2019 % Investment Properties 3,005,038 2,637,026 +14.0 Property under development 24,676 - Nm Total Assets 3,349,828 2,927,994 +13.9 Gross Borrowings1 1,165,756 870,388 +35.0 Total Liabilities 1,367,586 1,025,446 +31.9 Unitholders’ Funds 1,9
Slide 9: Aggregate Leverage
Aggregate Leverage As at As at +/(-) ($’000) 31 Dec 2020 31 Dec 2019 % Investment Properties1 3,005,559 2,585,178 +16.3 (excluding lease liabilities commitments) Deposited Properties1 3,287,441 2,838,306 +15.8 (excluding lease liabilities commitments) Gross Borrowings + Deferred Payment 1,190,432 87
Slide 10: Capital Management
Capital Management KGey-T] DC REIT 10 f
Slide 11: Prudent Capital Management
Prudent Capital Management ▪ Updated $500m MTN Programme to $2b Debt Issuance Programme in Jan 2021 ▪ Refinanced A$13.2m loan to 2024 and obtained new $150m 6-year revolving credit facility in 2H 2020 Debt Maturity Profile (as at 31 Dec 2020) As at 31 Dec 2020 11.7% Total debt1 ~$1,165.8m of externa
Slide 12: Prudent Capital Management
Prudent Capital Management ▪ Managing interest rate exposure: Investment properties breakdown1 Debt currency breakdown 63% of loans hedged with floating-to-fixed (as at 31 Dec 2020) (as at 31 Dec 2020) interest rate swaps, with the remaining Italy unhedged borrowings mostly in EUR Ireland 2.0% 9.9%
Slide 13: Portfolio Update
Portfolio Update KGey-T] DC REIT 13 f
Slide 14: Leveraging Strong Demand for Data Centres
Leveraging Strong Demand for Data Centres ▪ Achieved 100% occupancy at Keppel DC Singapore 5, following the completion of Stable income stream with high asset enhancement works in Dec 2020, up from 84.2% as at 30 Sep 2020 portfolio occupancy and long WALE ▪ Secured a tenant expansion at Keppel DC Si
Slide 15: Proactive Asset Enhancement Initiatives
Proactive Asset Enhancement Initiatives ▪ Keppel DC Singapore 5: Completed fit out of a new data hall, which was handed over to the client in Dec 2020 ▪ Continued progress on the development of Intellicentre 3 East Data Centre (IC3 East DC), as well as AEI works at DC1 and Keppel DC Dublin 2 New dat
Slide 16: Diversified and Resilient Portfolio
▪ Quality data centres that cater to the requirements of global clientele Diversified and Resilient Portfolio ̶ Colocation facilities provide diverse client profile and lease expiry Rental income breakdown (for Dec 20201) ̶ Fully-fitted and shell & core facilities By lease type: By trade sector: pro
Slide 17: Outlook
Outlook [CQYDc REIT vf
Slide 18: Strong and Resilient Data Centre Demand
Strong and Resilient Data Centre Demand ▪ Hyperscale operators generated over 80% of their 9M 2020 revenues from cloud, digital services and online activities, all of which have seen COVID-19 related boosts1 ▪ Hyperscale operator capex sets new record of US$100b in 9M 2020, an increase of 16% from 2
Slide 19: Positioned for Growth
Positioned for Growth ▪ The Manager will continue to strengthen Keppel DC REIT’s presence and position it to capitalise growth opportunities in the data centre industry Fast-growing asset class Resilient income stream Focused investment strategy Prudent capital management 19
Slide 20: Thank You
Thank You Important Notice: The past performance of Keppel DC REIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncertainties
Slide 21: Additional Information
iG) +t) DC REIT Additional Information y
Slide 22: Portfolio Overview (as at 31 Dec 2020)
Portfolio Overview (as at 31 Dec 2020) Attributable No. of Occupancy WALE Location Interest lettable area Valuation2 Lease type Land lease title clients1 rate (%) (years) (sq ft) Asia Pacific Leasehold Keppel lease / Keppel DC Singapore 1 Singapore 100% 109,721 23 91.1 S$298.0m 4.0 (Expiring 30 Sep
Slide 23: Portfolio Overview (as at 31 Dec 2020)
Portfolio Overview (as at 31 Dec 2020) Attributable lettable No. of Occupancy WALE Location Interest Valuation2 Lease type Land lease title area (sq ft) clients1 rate (%) (years) Sydney, A$59.0m Triple-net Intellicentre 2 Data Centre 100% 87,930 1 100.0 14.6 Freehold Australia (S$58.2m) (Shell & cor
Slide 24: Portfolio Valuation
Portfolio Valuation 31 Dec 2020 31 Dec 2019 Capitalisation Approach Capitalisation Rate 4.95% - 10.12% 5.50% -10.25% Discounted Cash Flow Approach Discount Rate 5.04% - 11.50% 4.75% - 12.00% Terminal Yield Rate 5.25% - 14.35% 4.75% - 15.00% 24
Slide 25: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Insurance Lease Property Asia Pacific Description Building Refresh Arrangement Capex Opex Tax Keppel lease1 / ◼ Client: Pays rent Keppel DC Singapore 1 ✓ ✓ ✓ ✓ Colocation2 ◼ Owner: Bears all expenses; responsible for facilities man
Slide 26: Overview of Lease Arrangements
Overview of Lease Arrangements Responsibilities of Owner Maintenance Lease Insurance Europe Description Property Building Arrangement Refresh Capex Opex Tax Cardiff Data Centre Triple-net lease ◼ Client: Pays rent and all outgoings; responsible for facilities management - - - - GV7 Data Centre Tripl
Slide 27: Keppel DC REIT Structure
Keppel DC REIT Structure as at 31 Dec 2020 Keppel Keppel Capital Telecommunications & Transportation Institutional and The REIT Manager can leverage The REIT Manager can leverage Public Investors the scale and resources of a larger the Sponsor‘s expertise and track asset management platform record i